Section 18, Tariff Act 1978 is amended by deleting tbe rate indicat€d under

Section I ofthe Extractive Industies RevenueAct 2018 is Amendmcnlamencted by inserting the following new definition irnmediatav aner nf f;*j'fi" I the words "revenue law" I I of 2ott. "royalty tetum" qreans a retum, including an anended' returD, that a taxable person is required to lodge under this Act, or any other enactrnent relating to fre adninistration ofthis Act. t9. S€rtion 43 ofthe ExtractiYe IndusEies RevenueAct 2018 is Amendmcnt amended by inserting the following new subsection (5) immediately o[ secxon {3 after subsection (4) of 2018. "(5) A person who ftils to file a myalty rcom by the due date shall be liable to pay a penahy equal to the greater of- (a) k100,000;cr O) l0% of the royalty amount payable for the period to \Yhich the retum relates. for each month iD which the relurn lemaiDs omstanding, until the rctum is filed or an ass€ssmeDt is issued in respect of the period to which the retum relates. 20- The Firsl Schedule of the Exractive Industries Revenue Acr 2018 is amended by repealing and replacing paragraph I with the following new paragraPh- " I .( I ) Subject to paragraPh (2), the following shall be the royalty rates for minerals- (a) in the case ofminerals obtained pusuant to an artisanal and smatl-scale mining licence- ?: No, I The Finance Act, 2024 @ 37i, for precious stones other than special stones; (D E7o for special stones; (iif I % for gold; and (iv) 370 for other cases, including bulk minerals." (b) in the case ofminerals obtaiDed prrsuant to mineral rights o&er than artisanal and smallscale mining licence- (i) 6.59'o for precious stones other than special stones; (D 87o for special stones; liif 57i, forprecious metals; (including gold) (iv) 3% for otber cases, including bulk minerals." Provided the exporter ofthe minerals in sutr'paragraph ( I XaXiii) shall make prior commitrnent to the National Minerals Agency and Bank ofsierra Leone to repatriate lhrough lhe commercial banking system, I 00% ofthe export proceeds within a period of45 days &om the day ofexport Amcrdmenr 21. Paragraph 2 ofthe First Schedule of&e Extractive of First lDdustries Revenue Act, 2018 is repealed and replaced by the HT,:: ii " rollowing new pa-agraph- 2018. "(l) Subject to the remainder ofrhis ParagraPh, the market value of minerals obtai.ned is- 2024 23 No. I The Findnce Act, (a) the realised gross price (without discount' commission or deduction) for a sale freeonboard (fob) at th€ point of export Aom Siera Leone or at the point ofprocessing or tlelivery within Sierra l-eone, as tbe case requires; and (b) deterrnined bY using- @ the actual terms ofsale: or (D in the case of a transaction between associated Persons or where the minerals are not sold within l2 months, using the arm's length standard as prescribed by section 95 ofthe Income Tax Ac! 2000 (Act No- 8 of2000)' p) The market value of a precious stone shall be (a) based on the curent market prices for wholesale rough precious stones of that nafure; and {b) determined as the highest of t}e values ascribed to tlle precious stone on evaluation by- 0 the mineral right holder; (ii) the Govemment e!'aiuators; and (iif an independent evaluator. (3) The market value ofgold shall be the weekly average ofthe l-onion PM Fix Price ofthe l-ondon Bullion Market Association in United States Dollars p€r fine troy ounce for the week in *'hich the gold is obtained. 24 No. 1 The Finance Act, 2021 (4) The market valu€ ofprecious melals (ot}rcr than gold) and bulk minerals shall be detemrined as the higher ot-- (a) the anount referred to in subparagrapir (1); and (b) 97 percent of the average of relevant interiational reference prices for the period in which the minerals are obtained as determined in accordance with subparagraph (s). (5) For the purposes ofsubparagraph (b) ofparagrapb 4- (a) an intemational reference price for a mineral (other than gold) shall be determined using the following indiccs: @ S&P Global; (ii) t ondon Metal Exchange; (iD Asian Metal; (iv) Commodity and Derivative Exchanges; and (v) Bloomberg; and (b) regulations may- 0) add to or subtr.act from the list in subparagraph (a); (if specify the period to be used for pricing a panicular mineral or terms for using a particular index; aad No. I The Finance Aa, 202t 5 (iii) incorporate other rules for determining the avenge and amount of releva[t intemational reference prices. (Q Where minerals (olher than precious slones or precious metals) shall be supnlied under a contract over a period exceeding one year- (a) tbe method for determining the value of minerals to produce a result in accordance with subparagraph (l) may be ag:eed with lhe Commissioner General, in consultation with the Minisrer responsible for finance and the National Minerals Ageucy (advance pricing agreement); and (b) the agreement referred in sub paragraph (a) shall be issued in accordalce with section 8 of the Income Tax (Transfer Pricing) Regulations 2021 . FINANCE ACT 2OI9